Freeman Furnishings has summarized its data as shown: Depreciation of factory building $77,500 Factory real estate taxes $15,000 Factory utility expenses $85,000 Indirect materials $32,000 Indirect labor $25,000 Direct labor cost $84,000 Direct labor hours incurred 21,500 Estimated direct labor hours 22,000 Raw material purchased $370,000 Raw material, beginning inventory $40,000 Raw material, ending inventory $29,000 Work in process, beginning inventory $52,000 Work in process, ending inventory $67,000 Estimated overhead $247,500 Compute the cost of goods manufactured, assuming that the overhead is allocated based on direct labor hours. $fill in the blank 1
Freeman Furnishings has summarized its data as shown: Depreciation of factory building $77,500 Factory real estate taxes $15,000 Factory utility expenses $85,000 Indirect materials $32,000 Indirect labor $25,000 Direct labor cost $84,000 Direct labor hours incurred 21,500 Estimated direct labor hours 22,000 Raw material purchased $370,000 Raw material, beginning inventory $40,000 Raw material, ending inventory $29,000 Work in process, beginning inventory $52,000 Work in process, ending inventory $67,000 Estimated overhead $247,500 Compute the cost of goods manufactured, assuming that the overhead is allocated based on direct labor hours. $fill in the blank 1
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Freeman Furnishings has summarized its data as shown:
| $77,500 | |
| Factory real estate taxes | $15,000 |
| Factory utility expenses | $85,000 |
| Indirect materials | $32,000 |
| Indirect labor | $25,000 |
| Direct labor cost | $84,000 |
| Direct labor hours incurred | 21,500 |
| Estimated direct labor hours | 22,000 |
| Raw material purchased | $370,000 |
| Raw material, beginning inventory | $40,000 |
| Raw material, ending inventory | $29,000 |
| Work in process, beginning inventory | $52,000 |
| Work in process, ending inventory | $67,000 |
| Estimated |
$247,500 |
Compute the cost of goods manufactured, assuming that the overhead is allocated based on direct labor hours.
$fill in the blank 1
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